SRI Capital, Inc. AOP Presentation.pdf · improve Substantial ... Revolution Internet Marketing...

Today’s Expectations

Let’s review the agenda:

• Drive People Capability – Lisa

• Break!

• Execute High Operational Standards - Steve

• Grow Real Sales – Robert

• 2010: The Bonus Plan – Robert

• Wrap-Up!

• Have A Safe Trip Home!!

Meeting Expectations

Let’s have a good time!

Be engaged!

Participate!

• Breaks

Be a leader at your table!

Take away and share some your ideas!

• Your managers

• Your team members

Leave with a common vision!

Go back and make a difference!

A Common Vision

The Importance of Vision

Why is it so important for leaders to have a

common and clear vision?

Because leadership is about going

somewhere. If you and your people don’t

know where you are going, your leadership

doesn’t matter!

Let’s talk today about our common vision….

2010

Another Year of Growth Joe Langteau

President & Chief Executive Officer

2010 Key Accomplishments

Comp sales of -.19% despite continued

economic challenges & cannibalization

Labor cost reduced from 32.33% to 31.95%

Food cost declined from 21.85% to 21.62%

9 restaurants were remodeled w/ “Momentum”

elements

Team member turnover annualized at 90%

2010 Key Accomplishments

2 new restaurants opened - one under

construction

Record OAR scores

Field OPS Team stronger than ever

LRM efforts are having a positive impact

Recognition culture is building

2010 Opportunity Areas

Growing Real Sales remains challenging

New restaurant performance below targets

Facility challenges resulted in higher than budgeted

R&M expense

Must take coaching process to next level

Voice of Guest program has exposed operational

weaknesses

We need to build a stronger bench

Comp Sales Trends are Soft

-4.00%

-2.00%

0.00%

2.00%

4.00%

P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12

-2.91%

2.56%

-1.40%

-1.28%

-2.62%

0.78%

-1.03%

0.86%

-0.50%

1.06%

0.65%

1.16%

-.19% 2010 YTD

Comp Sales By Market

-8.00%

-4.00%

0.00%

4.00%

8.00%

12.00%

16.00%

DFW Austin Houston El Paso Waco Amarillo

0.73%

-1.57%

-4.30% 0.22%

-0.03%

9.88%

-.19% 2010 YTD

2010 Top 10 Scoreboard!

1. Kendell Bolden #1468

2. Son Laveau #3007

3. Randall Cook #1333

4. Dave Lucas #1487

5. Ivan Lagunes #1467

6. James Bush #1392

7. Robin Castaneda #1454

8. Marty Huss #3010

9. Staci Robeson #1939

10. Stan Venne #3025

2011

The Year AheadJoe Langteau

President & Chief Executive Officer

2011 Outlook

Economic environment predicted to

improve

Substantial competitive activity at breakfast

IHOP continues to outperform the category

Guest expectations remain high - no tolerance for poor

service

Best operated restaurants will widen their lead

Opportunities exist to secure real estate at reasonable

prices

Solid marketing calendar in place w/ LRM support

Doubled Market Share in 10 Years

51% 51% 49% 47%58%62% 59% 55% 53%

47%

7% 7% 7% 7%

6% 6% 6% 7%7%

7%

13%12% 12% 13% 13%

10%9%9%11% 11%

15%14% 15% 16% 16%11%9%9% 12% 13%

18%16% 16% 16% 17%15%16%15% 15% 16%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009$1

4.2B

$14.

5B

$14.

6B

$14.

5B

$14.

1B

$13.

9B

$13.

8B

$14.

0B

$13.

9B

$14.

2B

CRESTFamily Dining

Family-style Market Share by Brand

Mark

et

Share

Independent /

Other Chains

Increasing Competitive Pressure from

Family Dining, Fast Casual and QSR

$74.0MM

$2.6MM

$4.2MM

$29.8MM

$3.4MM

$17MM

$2.2MM

$36.7MM

$37.9MM

$8.3MM

$3.0MM

$36.6MM

2011 Critical Priorities

Grow sales by 1.62% w/ traffic increases

Launch RosNet food cost tool

Take LRM efforts to the next level

GLI of 80% through focus on guest service

Improve restaurant cash flow thru focus on labor &

food cost control

Effectively manage labor costs

Achieve team member & management turnover

targets

Complete 10 remodels & open 2 new restaurants

Recognition acceleration

What Do We Stand For?

Recognition

Coaching

Guest Service

Recognition

Must become a part of how we do business

Praise progress

Build strong systems

Recognition is a great accelerator

Personalize to fit your team

What gets recognized gets repeated

Coaching

Feedback is the breakfast of champions

Define the performance breakthrough

Structured coaching sessions matter

Taking advantage of coaching moments

Managing the difficult conversations

Keep score of progress

Active listening can be eye-opening

Our Passion to Serve

“Outstanding Guest Service is the Only

Long-Term Sustainable Competitive Advantage”

Guest perception really matters

Create an environment where team members are

rewarded for exceeding guest needs

Eliminate barriers that negatively impact guest

service

Hire the smile & attitude

Reward guest service role models

2011

The Year Ahead

Thank You!

2011

Optimize Restaurant

ProfitabilityDoug Shaw

Chief Financial Officer

2010 Achievements

Project 10 was implemented and achieved!

• We budgeted over $900K in improvements

For the first time in ACG history, we will end the

year with 10% Margins!

• Projected Sales of $110M and EBITDA of $11M

All General Managers have been trained by

Darylann on the P&L Review Process.

• You now have the tools to more effectively manage your

P&L’s

Micros 4.8 was successfully rolled out to every

restaurant

• We were once again the pacesetter in the IHOP System

2011 Initiatives

Launching a 4 restaurant test with

RosNet (Food Cost & Reporting Tool)

Implementation of Restaurant Financial

Audit Process

Continue to focus on unprofitable &

questionable discounting

Test the RosNet Labor solution in the

second half of the year

RosNet Food Cost Solution

Launching a 4 restaurant test with RosNet

(Food Cost & Reporting Tool)• This is our project, not IHOP’s project

• RosNet is a proven food cost and reporting tool in the Applebee’s

system

RosNet will provide us with…• Actual vs. Theoretical food cost down to the ingredient level

• Actual vs. Budget Weekly P&L

• Full suite of reports on Sales, Food Cost, Labor and P&L

Performance

• No more package logs, no more e-mailing of product transfers, no

more 9 numbers files…

The test should last a couple of periods then we will

start training & rolling

Restaurant Financial Audits

Darylann has created a Restaurant Audit

Document

The intent of the audit is to coach and teach• Goal is to have consistently applied processes across the system

• Focuses on Cash Handling, Inventory, Accounts Payable,

Discounts, etc.

The Restaurant Audit will be a graded audit so you

will know where you stand

Results will be communicated to you, the Area

Director and the RDO

Reduce Discounts

Every 1% In Discounts equates to $1.0M

In Restaurant Cash Flow!

Focus on the Outlier Restaurants• Daily Reporting of Server Sales & Discount %

• Identify Patterns of Behavior

• Execute Server Checkouts with Excellence!

We did this in 2008 and achieved an $800,000 P&L

Impact

Every time we focus on this we make an impact.

Let’s make it permanent!

2011 Budget Assumptions

Annual Adjusted EBITDA Goal is $11.9M

Comp Sales Growth = 1.62%

Open 3 New Restaurants; 1 in January and 2 mid-

year

Remodel 10 Restaurants

Base Business Restaurant Cash Flow Growth of

$866,000

2011

Enhance Facility BasePhil Slyby

Director of Construction & Real Estate

Christina Castillo

• Facility Manager – North Region

Dan Parada

• Facility Manager – South Region

Mari Martinez

• Real Estate & Facilities Project Coordinator

R&[email protected]

• Hotline to communicate all facility issues

• Goes to all Facility Managers mailboxes

Enhance Facility Base

mailto:R&[email protected]

3 NRO’s in 2010:

• IHOP #3023 Mesquite

o 6-12-10

• IHOP #3027 North Park

o 11-10-10

• IHOP #3026 Arlington

o 1-15-11

Real Estate, Construction &

Facilities

Sites under contract:

• Harker Heights

o Suburb of Killeen

o Estimated opening P7, 2011


Facilities

Sites being negotiated:

• Abilene

• Webb Chapel – Dallas

• Freedom Crossing – Fort Bliss

• Kyle Crossing – Kyle, Texas


Facilities

Cities being searched:

• Tyler

• Lindale

• Stephenville

• Cleburne

• Houston

• Lakeway (Austin)


Facilities


Facilities

#3027 Northpark in Dallas


Facilities

#3026 Arlington


Facilities

2011 Remodels• IHOP #1437 - The Woodlands

1/9 – 1/12

• IHOP #1459 - Uvalde

2/6 – 2/9

• IHOP #1450 – Cedar Hill

3/27 – 3/30

• IHOP # 1937 - Decatur

4/17 – 4/20

• IHOP # 1404 - Garland

5/15 – 5/18


Facilities

2011 Remodels• IHOP #1413 - Plano

6/5 – 6/8

• IHOP #1929 – The Colony

7/10 – 7/13

• IHOP #1438 - Lewisville

8/21 – 8/24

• IHOP # 1439 - Austin

9/25 – 9/28

• IHOP # 1934 – El Paso

10/16 – 10/19


Facilities


Facilities

http://www.acgtexas.com/acgintranet/intranet.php?id=1


Facilities

http://www.acgtexas.com/acgintranet/intranet.php?id=1

2011

Grow Real SalesMike Grady

Regional Director of Operations

South Region

Grow Real Sales

Properly Implement the Pancake

Revolution Internet Marketing Plan

Establish and Execute IHOP Nights in Every

Restaurant

Drive Improved Execution at the Front Door &

Host Areas

Grow Real Sales

Properly Implement the Pancake

Revolution Internet Marketing Plan

• Q1 Milestones Plan and implement comprehensive program

to drive overall E-Club membership to at least 100,000 members by April 1, 2011.

Create and implement E-Club marketing program to supplement current IHOP Corporate LTO and marketing campaigns.

Grow Real Sales

Establish And Execute IHOP Nights

in Every Restaurant

• Q1 Milestones

Implement specific training guidelines

including:

Internal restaurant guest connect

practices

Proper use of available marketing and

support materials

Proper IHOP Night operational implementation

Grow Real Sales

Drive Improved Execution at the

Front Door & Host Areas

• Q1 Milestones

Enhance front door execution to achieve a

minimum 80% “Greeting” VOG Score thru the

following:

Verify proper scheduling procedures in all

restaurants

Readdress hospitality expectations

Re-train guest timing procedures

Re-train wait lists/times

IHOP National

Pancake Day 2011

Mike Grady & Wendell Patterson

IHOP National

Pancake Day 2011

Who are the Shriners?

• Key focus areas

International fraternity of approximately 375,000 members (volunteers) from 191 temples throughout the US, Canada and Mexico.

They support a one of a kind international health care system of 22 hospitals dedicated to improving the lives of children.

These hospitals provide care for children up to 18 years of age free of charge:

Orthopedics

Burns

Spinal cord injuries

It costs approximately $2M a day to operate their 22 hospitals.

IHOP National

Pancake Day 2010 – The Review!

What happened last year?• Last year, we once again focused an entire

month to drive a company-wide initiative to raise funds for The Shriner’s Hospitals.

• Overall, it was an unbelievable success!

• Business was great!

• Donations were at an all time high!

• Great job to everyone!

IHOP National

Pancake Day 2010 – The Review!

Four Year History of Shriner’s Donations

IHOP National

Pancake Day 2011

What’s the plan this year?

• Another aggressive 3 ½ week window

• Raise more money again this year by sticking to our plan!

• Again this year, the RSC will be included!

• Promotion begins on Friday, January 31, 2010.

• Culminates with NPD – March 1, 2011

• Christy will be in the lead this year!

• Daily reporting!

• 2011 Goal - $250,000.00!!

• $5.00 per server – per shift!!!

IHOP National

Pancake Day 2011

What are the specific components?

• Wall plaques for donations

Yellow Wall Tags - $1.00 donation

Red Wall Tags - $5.00 donation

$5.00 donation comes with a complimentary $5.00

Bounce Back Card.

$5.00 Bounce Back Card is for use on NEXT visit.

• In-restaurant POP materials

• Christy will supply everyone with specific details in the coming

weeks.

• Remember – it’s for the kids! Let’s do it again this year!

2011

Execute High

Operational StandardsWendell Patterson

Regional Director of Operations

North Region

Execute High

Operational Standards

Provide a Consistently Superior

Guest Experience - Measured by the VOG, Complaint Reductions and A/B Operator Targets

Ensure that Managers are On the Floor Touching Tables & Connecting w/Community

Exceed Food Safety & Sanitation Targets

Execute High


Provide a Consistently Superior

Guest Experience - Measured by the VOG, Complaint Reductions and A/B Operator Targets

• Milestones

Enhance operational execution to achieve a minimum

80% “Speed” and “Food Quality” Scores thru:

Daily monitoring of table turn times via B-50

Focus on outlier approach with servers in areas of table

turns and VOG scores

Re-train and enhance expo and food running

performances

Re-train and enhance server table service performances

Area Directors to target underperforming restaurants.

Execute High


Ensure that Managers are On the Floor Touching Tables & Connecting w/Community

• Milestones

Enhance manager’s operational execution of shift

management, guest interaction, and guest connections

by rolling out specific training guidelines including:

Focus on outlier approach using restaurant’s VOG scores

Re-focus on shift management and guest interaction

expectations during MIT training

Re-train shift management expectations to all members of

management

Area Directors to target underperforming restaurants.

Execute High


Exceed Food Safety & Sanitation Targets

• Milestones

Implement enhanced Green Book.

Area Directors to implement enhanced

Visitation Report

Enhance higher level of accountability in each

restaurant.

2011

Drive People CapabilityLisa Hammond

Senior Director

Human Resources

Drive People Capability

Hire Right – 2010 Year In Review• Management turnover

2009 – Manager turnover was 31%

2010 – Manager turnover was 27%

2011 – goal is 25%

• Team member turnover 2008 TM turnover was 152%

2009 TM turnover was 95%

2010 TM turnover goal is 95% and we finished the year at 86%!!!


2010 Retention Awards• First Place

Erin Blackmon - IHOP #3019 10%

• Second Place Jon Knoke – IHOP #1439 23%

• Third Place Jon Dyess – IHOP #1486 36%

• Fourth Place Walter Steele – IHOP #1487 37%

• Area Director Scot Thomas 51%


• Most Improved Jeff Holman – IHOP #3003

2009 – 263% to 147% in 2010

Dodd Berendt – IHOP #3017 2009-157% to 63% in 2010


Hire Right!

• Through the Implementation of Click and Hire, Enhance the Selection Process, resulting in Best in Class Retention

Train Right!

• Through enhancements to the coaching process, ensure all employees receive timely, productive feedback

Treat Right!

• Through the implementation of the Pour It On! Program, continue building a recognition and retention culture at all levels of the organization.


Progression Reports• Team members will be completed in February.

• GM & Managers will be completed in March

Raises will be effective Week 1 of P4.

• Progression report forms

Available for download on the Netchex web site.


“Setting a goal is not the main thing. It is deciding

how you will go about achieving it and staying

with that plan.”

Knute Rockne

Mission Statement - 2011

Mission Statement

• This statement is a very brief statement of our

organizational goal. It should be easy to remember

and meaningful to employees and guests alike.

By serving high quality food in a

clean, friendly environment, we

ensure that each guest leaves

knowing “This is MY IHOP”.

Guiding Principles - 2011

Guiding Principles

• These phrases should be concise and limited in

number. It should drive home “what is important to

us and what we stand for”

We create great memories for our guests,

employees, local communities and each

other.

We are committed to recognizing the contributions

of every member of the team.

Individual accountability and execution is the

foundation of our team’s success.

Guiding Principles - 2011

Guiding Principles

• These phrases should be concise and limited in

number. It should drive home “what is important to

us and what we stand for”

We coach to give people the development they

need to achieve their goals.

We conduct ourselves with honesty, integrity, and

the highest business ethics.

We value the diversity of our team, guests and

suppliers; demonstrating respect for the individual.

Operations Awards

Robert Tomlinson

Senior Vice President – Operations

Operations Awards

90-90-90 Club Awards• IHOP #1375 College Station

Shannon Sabur

• IHOP #1396 Austin Leo Gaertner

• IHOP #1404 Garland Janelle Thompson

• IHOP #1421 Austin Masoud Madji

• IHOP #1477 Austin Mary Touchton

Operations Awards

90-90-90 Club Awards• IHOP #1487 Pflugerville

Dave Lucas

• IHOP #1934 El Paso Richard Cannarsa

• IHOP #1954 Gainesville Daren Mills

• IHOP #3000 Slaughter Lane - Austin Chris Montana

• IHOP #3004 Ennis Christina Dodson

Operations Awards

90-90-90 Club Awards• IHOP #3019 Highland Village

Erin Blackmon

• IHOP #3023 Mesquite Julio Dominguez

Operations Awards

Double Digit Awards

• IHOP #1468 Irving Kendell Bolden

11.52%

• IHOP #1337 Amarillo Roger King

23.32%

ACG Texas

Ring of Honor

ACG Texas

Ring of Honor

Ring of Honor Winners

• 2009 – 14

• 2010…………

ACG Texas

Ring of Honor

2010• IHOP #1337 Amarillo

Roger King

• IHOP #1404 Garland

Janelle Thompson

• IHOP #1413 Plano

Farooq Ahmad

• IHOP #1421 Austin

Masoud Madji

• IHOP #1486 Hillsboro

Jonathan Dyess

ACG Texas

Ring of Honor

2010• IHOP #1487 Pflugerville

Dave Lucas

• IHOP #1498 Southlake

Susana Cruz

• IHOP #1499 Main Street - Lewisville

Godwin Uba

• IHOP #3006 Allen

Al Lyell

• IHOP #3011 Terrell

David Robbins

ACG Texas

Ring of Honor

2010• IHOP #3012 El Paso

Hector Diaz

• IHOP #3017 North Frisco

Dodd Berendt

• IHOP #3018 Euless

John Flanagan

• IHOP #3020 El Paso

Ray Caro

ACG Texas

Ring of Honor

2010 – Double Winners!• IHOP #1408 Abrams - Dallas

Ava Hardin

• IHOP #1450 Cedar Hill

Estella Gallegos

• IHOP #1476 Austin

David Henson

• IHOP #3009 Lancaster

Clifton Davis

• IHOP #3024 Bryan

Chuey Cabrera

ACG Texas

Ring of Honor

2010 – Annual 100% Winner!• IHOP #3004 Ennis

Christina Dodson

2011

Choices!Robert Tomlinson

Senior Vice President – Operations

ACG Texas

Who is the Competition?

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2011 - Tomlinson Top 7

VOG!

IHOP Nights

E-Club

The HOSPITALITY Gene!

Coaching

Recognition

Accountability

It’s not what happens to you…..

Voice of the Guest

Critical to our growth and is a key piece of

our A/B ranking.

Currently, the IHOP system is at 76%.

We – on the other hand – are at 73%.

Remember, these comments come directly from our

guests – and some are troubling!

Voice of the Guest

Here are the details:

• Overall GLI 73%

• Overall Satisfaction 67.9%

• Likely to Return 79.9%

• Likely Recommend 71.3%

• Accuracy 93.1%

• Greeting 65.9%

• Friendly 77.1%

• Speed 64.6%

• Attentive 70.8%

Voice of the Guest

Here are the details:

• Food Quality 67.9%

• Staff Appearance 75.5%

• Clean 68.2%

• % Alerts 15.7%

• Number of Surveys 1,312

• High YTD – 49

• Low YTD – 4

• What will you choose to do?

IHOP Nights

Outstanding and proven way to drive top

line sales!

Our goal is to have one IHOP Night per restaurant

per week during 2011.

Why has this been a struggle to get off the ground?

• Culture?

• Commitment?

• Proven?

What will you choose to do?

E-Club

Due to your hard work, ACG Texas leads

the IHOP brand.

• IHOP 591,000 (1500 restaurants)

• Southwest Region 151,000

• ACG Texas (4%) 84,304 (14.3%)

E-Club

Six of the Top Ten performers!

The Top Performers!

6. IHOP #3020 2,683 Members #8

5. IHOP #3012 2,795 Members #7

4. IHOP #1413 2,845 Members #6

3. IHOP #3025 3,546 Members #5

2. IHOP #1437 3.998 Members #4

1. IHOP #1487 7,613 Members #1

E-Club

Fish Bowl is a restaurant industry “Best

Demonstrated Practice” and proven way to drive top

line sales!

Why has this been a struggle for some restaurants to

get off the ground?

Two per server – per shift!

New goal of 120,000 Members!

• 100,000 by end of P3!

• 120,000 by end of P6!



What are our guests saying?

What about your team?

Do you have the gene?

How do we identify it? (Hire Right)

How do we train it? (Train Right)

How do we nurture its growth? (Treat Right)

The BAD examples!

How do we change our culture?


Coaching!

It’s not a form!

It’s not a checklist!

It is about connection!

It is about commitment!

It’s time for us to get this right!

Honest and open feedback is an opportunity!

Here is another BAD example!


Recognition!

Review our commitment in 2010.

How far have we come?

Where are our opportunities?

We need your help!

Recognition is something we are – not something we

do!


Accountability!

Is our society is all about blame?

How hard is it?

What are the benefits?

We need to move forward!


2011 - Tomlinson Top 7

VOG!

IHOP Nights

E-Club


Coaching

Recognition

Accountability

Choices!

Today, we begin our new

journey in 2011………TOGETHER!

We must change who we are!

• If it’s going to be – it’s up to me!

Commitment vs. Compliance!

Go back and make an impact!

• Be the “Ambassador of Change”!

• Make a difference!

• Take care of the guests – and each other!

Choices!

Who’s With Me?

2011

Quarterly VOG IncentivesRobert Tomlinson

Senior Vice President - Operations

Quarterly VOG Incentive

2011 Quarterly Sales Incentive

• Drive For Five!

This is the key to success!

• The only criteria is the GLI score!!

• Highest GLI scores during each quarter

First Place – GM earns $1,000.00

Second Place – GM earns $500.00

Third Place – GM earns $250.00

Most Improved – GM earns $250.00

One North and One South!

• All restaurants participate.

Quarterly VOG Incentive

2011 Quarterly Sales Incentive

• Drive For Five!

• Areas

Highest server GLI score in each AD area = $100.00!

One server per Area Director per period.

• Restaurants

Highest server GLI score in each restaurant = $25.00

One server per restaurant per period.

Servers must have a minimum of 5 surveys to participate.

SRI Capital, Inc. AOP Presentation.pdf · improve Substantial ... Revolution Internet Marketing...

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Transcript of SRI Capital, Inc. AOP Presentation.pdf · improve Substantial ... Revolution Internet Marketing...